Malaga Inc. (TSX:MLG)(OTCQX:MLGAF) is pleased to announce an
updated reserve and resource calculation compliant with National
Instrument 43-101 of its Pasto Bueno tungsten mine located in
Northern Peru. The report was prepared by the independent mining
consultancy firm Pincock, Allen & Holt.
The resource estimate includes 195,880 tonnes of proven and
probable reserves with a WO3 average grade of 0.66%, 814,096 tonnes
of measured and indicated resources with a WO3 average grade of
0.78%, 4,168,216 tonnes of inferred resources comprised of
3,718,216 tonnes with a WO3 grade of 0.83%, and 450,000 tonnes with
a WO3 average grade of 0.14% coming from the Huaura tailings pond.
The measured and indicated resources are inclusive of reserves. The
complete report and its appendixes will be filed on SEDAR
(www.sedar.com) in the next 45 days and will also be available on
the Company's website.
"We are very pleased with the upgraded resource estimate at the
Pasto Bueno mine," said Pierre Monet, President and CEO of Malaga.
"We have been increasing resources and reserves every year since
restarting the production at the mine in 2007. At current
production rates, we have close to two years of reserves."
Mr. Monet noted that these figures do not include the mantos
located on the southern part of the property that the Company
started to drill in 2011. "There is still significant potential
upside to come with future drilling campaigns on this underexplored
part of the property. In addition, we are also investigating the
feasibility of re-processing 450,000 tonnes of inferred resources
from our tailings pond", he said.
The summarized table of reserves and resources as of November 25, 2011 is as
follows:
----------------------------------------------------------------------------
NATIONAL INSTRUMENT 43-101 COMPLIANT TECHNICAL REPORT
----------------------------------------------------------------------------
CATEGORY 2011 2010
--------------------------------------------------
% increase
TONNES GRADE % WO3 TONNES GRADE % WO3 in tonnage
----------------------------------------------------------------------------
Proven
Reserves 86,605 0.66% 81,696 0.71% 6%
----------------------------------------------------------------------------
Probable
Reserves 109,275 0.66% 87,731 0.68% 25%
----------------------------------------------------------------------------
Total Reserves 195,880 0.66% 169,427 0.70% 16%
----------------------------------------------------------------------------
Measured
Resources 79,715 0.76% 64,757 0.90% 23%
----------------------------------------------------------------------------
Indicated
Resources 734,382 0.78% 334,088 0.73% 120%
----------------------------------------------------------------------------
Total M&I
Resources 814,096 0.78% 398,845 0.75% 104%
----------------------------------------------------------------------------
Inferred
Resources 3,718,216 0.83% 1,820,641 0.70% 104%
----------------------------------------------------------------------------
TAILINGSInferr
ed Resources 450,000 0.14% - - -
----------------------------------------------------------------------------
Total Inferred
Resources 4,168,216 0.76% 1,820,641 0.70% 147%
----------------------------------------------------------------------------
(i) Measured and Indicated Resources include all the Proven and Probable
Reserves
Cut-off for reserves: 0.44% W03
Cut-off for resources: 0.36% W03
Included in the reserves are all the measured resources diluted
by 20 cm of width for veins at least one meter wide
The increase in reserves and resources stems from ongoing
underground development and exploration at Pasto Bueno. In 2010 and
2011, 1,929 meters of drilling were completed, mainly in the
Consuzo area (Loreto vein), which yielded indicated resources of
233,352 tonnes grading 0.75% WO3 and 2,161,572 tonnes of inferred
resources grading 0.86% WO3 .
During the second half of 2011 and the early part of 2012,
Malaga undertook a first exploratory drilling campaign in the
southern part of the property (the mantos), but the results of that
campaign are not included in this reserve and resource
calculation.
Mining Methods
Malaga employs three mining methods including: overhand cut and
fill, shrinkage stoping and a variation of room and pillar using
backfill. The overhand cut and fill and shrinkage stoping are used
on steeply dipping veins while the room and pillar is used on veins
dipping 45 degrees or less. The mine production at Pasto Bueno is
approximately 350 tpd with a plant capacity of 500 tpd. The
processing is uniquely carried out by gravity and the final product
is a premium concentrate containing at least 70% WO3. The recently
upgraded tailings pond will have, at 500 tpd, a life of 5 to 6
years. The dike will be completed after the rainy season in
April.
Strict QA/QC procedures were followed for all the samples and
the quality of sample preparation, security, integrity and chemical
analyses was equal to or exceeded current industrial standards and
the requirements of NI 43-101.
The resource and reserve estimate was prepared by Richard
Kehmeier, C.P.G., and Richard Addison, P.E., C.Eng., of Pincock,
Allen & Holt, in Golden, Colorado, who are Qualified Persons
("QPs") as defined by NI 43-101. Pincock, Allen & Holt, Mr.
Kehmeier and Mr. Addison are not associated in any manner with
Malaga Inc. or any of its subsidiaries or affiliates. This Press
Release has been read and approved by Malaga's Qualified Person,
Mr. Alonso Sanchez, Chief Geologist.
ABOUT MALAGA
Malaga Inc. owns and operates the Pasto Bueno mine in Peru, and
is one of the few publicly-traded producers of tungsten outside of
China. Malaga is a low cost producer due to its gravimetric ore
concentration process and the availability of hydroelectric power
generated on its property. While Malaga's production capacity
represents about 10% of the tungsten available for sale outside of
China, the Company plans to increase production and is currently
exploring the property to develop its reserves and resources.
FORWARD-LOOKING STATEMENTS
Certain statements in the foregoing may constitute
forward-looking statements which involve known and unknown risks,
uncertainties and other factors that may cause Malaga's actual
results, performance or achievements or industry results to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. The information provided reflects management's current
expectations regarding future events and performance as of the date
of this news release.
Contacts: Pierre Monet President and Chief Executive Officer
Malaga Inc. (514) 288.3224 Nicole Blanchard Corporate Strategy and
Investor Relations Sun International Communications (450)
973.6600
Malaga (CE) (USOTC:MLGAF)
Historical Stock Chart
From Feb 2025 to Mar 2025
Malaga (CE) (USOTC:MLGAF)
Historical Stock Chart
From Mar 2024 to Mar 2025
